The Bank Lending Channel of Monetary Policy? The Panel Evidence from Egypt

  • Mohamed Aseel Shokr Universiti Kebangsaan Malaysia
  • Zulkefly Abdul Karim Tanta University
  • Mansor Jusoh Universiti Kebangsaan Malaysia
  • Mohd. Azlan Shah Shah Zaidi Universiti Kebangsaan Malaysia
Keywords: bank lending, monetary policy, Egypt

Abstract

This paper examines the relevance of the bank lending channel of monetary policy in Egypt using bank-level data. Previous empirical studies in Egypt that used macro-level data have not supported the relevance of the bank lending channel. However, using a sample of 32 commercial banks for the period from 1998 until 2011 and a dynamic panel GMM technique, the empirical findings revealed the relevance of the bank lending channel of monetary policy in Egypt. Moreover, there is a heterogeneity effect of monetary policy on bank loans according to bank size, in which the small banks are more affected during a monetary contraction than larger banks. This finding signals that the monetary authorities in Egypt should take cognizance of the stability of interest rates in order to stabilize the bank loan supply.

Author Biographies

Mohamed Aseel Shokr, Universiti Kebangsaan Malaysia

SHOKR, Mohamed Aseel is a PhD student at the School of Economics, Faculty of Economics and Management, The National University of Malaysia (UKM), Bangi, Selangor, Malaysia. He is an assistant lecturer at Faculty of Commerce, Tanta University, Tanta, Egypt. He earned his master degree from Tanta University, Tanta, Egypt. His research interests are Monetary and Financial Economics and Banking.
    Author’s contact details: School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), 43600 Bangi, Selangor, Malaysia; E-mail: m_aseel1975@yahoo.com.

Zulkefly Abdul Karim, Tanta University

ABDUL KARIM, Zulkely is an Associate Professor at the School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM). He earned his PhD from University of Southampton, U.K. His research interests are Monetary and Financial Economics, Public Policy, Capital Market, Banking, and International Finance. Some of his works have been published in Journal of Asia Pacific Economy, Global Economic Review, Journal of Asia Pacific Business, Studies in Economics and Finance, Applied Economics Letters, International Journal of Business and Society, International Journal of Management Studies, Jurnal Ekonomi Malaysia, Jurnal Pengurusan and IIUM Journal of Economics & Management.
    Author’s contact details: School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), 43600 Bangi, Selangor, Malaysia; E-mail: zak1972@ukm.edu.my or mzkarim72@yahoo.com.

Mansor Jusoh, Universiti Kebangsaan Malaysia

JUSOH, Mansor is a Professor at School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), Bangi, Selangor, Malaysia. He earned his PhD from Washington University, USA. His research interests are Monetary Policy, Banking and Econometrics.
    Author’s contact details: School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), 43600 Bangi, Selangor, Malaysia; E-mail: mansor3012@gmail.com.

Mohd. Azlan Shah Shah Zaidi, Universiti Kebangsaan Malaysia

SHAH ZAIDI, Mohd. Azlan is an Associate Professor at School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia. He obtained his PhD from The University of New South Wales, Sydney, Australia. He has Master in Economics from Universiti Kebangsaan Malaysia and BA (Economics) from The University of Texas at Austin, USA. His research interests are in Macroeconomics and Applied Econometrics. He has published in several SCOPUS/ISI indexed journals.
    Author’s contact details: School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), 43600 Bangi, Selangor, Malaysia; E-mail: azlan@ukm.edu.my.

References

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Published
2014-12-11
How to Cite
Shokr, M. A., Karim, Z. A., Jusoh, M., & Zaidi, M. A. S. S. (2014). The Bank Lending Channel of Monetary Policy? The Panel Evidence from Egypt. Gadjah Mada International Journal of Business, 16(3), 255-274. Retrieved from https://dev.journal.ugm.ac.id/v3/gamaijb/article/view/15480